You guys are missing the point. American, JBlu, DAL, etc. are just like options right now. They could either become worthless at a certain point or the return could be extraordinary. American traded at 40 dollars at one point and now fetches around 8.

I wouldnt be opposed to throwing a small amount of cash, say 5 grand, at American. In 12 months, it could be back to 40 dollars if oil comes down hard enough. That 5 grand could easily turn to 25 grand.

Quote from jackstone54:In 12 months, it could be back to 40 dollars if oil comes down hard enough. That 5 grand could easily turn to 25 grand.

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Is there any benefit to owning an Airline as a synthetic oil put rather than owning an outright crude oil future put? I can't think of one, not with the Airlines losing money if crude stays where it is (just like the a put would lose time premium).